Ukraine – Ireland’s concerns: “Loans cannot go on indefinitely”

Brussels – The EU must urgently find new ways to support Ukraine financially, as the current system of loans “cannot go on indefinitely.” Irish Prime Minister Micheál Martin does not mince words: the European Union is now facing difficulties. While support for Kyiv remains firm, it is becoming increasingly clear that continuing on the current path is unsustainable. The informal summit of EU heads of state and government, hosted by Ireland, finds itself having to discuss this aspect in particular. The Ukrainian issue ultimately boils down to an accounting headache, with all the uncertainties that it entails. 

This is also because, as Martin points out, the challenging task of making funds available to meet Ukraine’s financial needs is linked to the complex negotiations on the EU’s next multiannual budget (MFF 2028–2034): “Some Member States link loans to Ukraine to the MFF”, he explains on the sidelines of the proceedings. This means that if governments are required to contribute more to Ukraine, they will contribute less to the running of the European Union and its programmes. Hence, the call to find new solutions that go beyond granting money on credit. 

“For the 2027 needs, the loan is the best option“, the Irish Prime Minister has no doubts on this point. Theadditional 70 billion euros needed will be paid out. Martin focuses on the future, for which a new solution must be found. He points out that the twelve-point strategy has not changed: “Using frozen Russian assets was Plan A, while the €90 billion loan was Plan B.” Plan A has not disappeared; indeed, it is once again the subject of fresh deliberations, but it remains impractical. “We need practical tools,” Martin stresses. This is the European conundrum regarding support for Ukraine.